Stelco Inc. has entered into a commitment letter with GE Corporate Lending Canada regarding a proposed refinancing of Stelco's existing revolving term loan.

The proposed refinancing would replace Stelco's existing revolving term loan with a fully drawn facility in a US dollar amount equivalent to $275 million with a term of six years. The new facility would have a significantly lower interest rate and fees compared to Stelco's existing revolving term loan.

In relation to this refinancing, Stelco has entered into an agreement with its lender to defer payment of the annual fee for the existing revolving term facility to from March 31, 2007 until May 11, 2007. Under the agreement, if the existing revolving term credit facility is repaid by May 11, 2007, the deferred fee will be waived.

"This financing, in addition to our recently enhanced asset-based loan facility, provides a favorable long-term debt structure for Stelco and is expected to reduce our financing costs", said Rodney Mott, President and CEO.

Completion of the refinancing is subject to a number of conditions that must be satisfied no later than May 11, 2007.

Stelco, one of Canada's largest steel companies, is focused on its two Ontario-based integrated steel businesses located in Hamilton and in Nanticoke. These operations produce high quality value-added hot rolled, cold rolled, coated sheet and bar products.